The name is absent



Table 3: Estimation of Rank Wage Differentials

Modelsa

Variablesb

(1)
OLS

(2)
OLS

(3)
Fixed-Effect

(4)

OLS with CA

(5)

Fixed-Effect with CA

All Firms
Skill

-

1.747***

1.758***

-

-

Rank L

(0.044)

-

(0.150)

-

-

-

Rank M

0.366***

0.157***

0.086***

0.172***

0.092***

Rank U

(0.019)

1.445***

(0.017)

0.813***

(0.015)

0.364***

(0.019)

0.818***

(0.016)

0.344***

Rank EX

(0.043)

2.311***

(0.042)

1.281***

(0.022)

0.580***

(0.043)

1.250***

(0.024)

0.508***

(0.078)

(0.079)

(0.035)

(0.124)

(0.043)

Skill*Rank L

-

-

-

1.658***

1.520***

Skill*Rank M

-

-

-

(0.052)

1.722***

(0.165)

1.535***

Skill*Rank U

-

-

-

(0.065)

1.810***

(0.157)

1.898***

Skill*Rank EX

-

-

-

(0.089)

1.852***

(0.154)

2.065***

(0.188)

(0.174)

Adj. R2

0.49

0.64

0.94

0.64

0.94

Private Sectorc
Skill

-

1.929***

1.799***

-

-

Rank L

(0.053)

-

(0.150)

-

-

-

Rank M

0.376***

0.132***

0.071***

0.170***

0.075***

Rank U

(0.022)

1.503***

(0.019)

0.768***

(0.017)

0.363***

(0.021)

0.794***

(0.018)

0.334***

Rank EX

(0.056)

2.203***

(0.017)

1.358***

(0.025)

0.514***

(0.017)

0.891***

(0.027)

0.469***

(0.152)

(0.127)

(0.041)

(0.151)

(0.052)

Skill*Rank L

-

-

-

1.730***

1.594***

Skill*Rank M

-

-

-

(0.060)

1.841***

(0.195)

1.595***

Skill*Rank U

-

-

-

(0.082)

2.032***

(0.184)

2.033***

Skill*Rank EX

-

-

-

(0.121)

3.808***

(0.186)

2.067***

(0.453)

(0.218)

Adj. R2

0.45

0.61

0.94

0.62

0.94

a-Dependent variable is wage in level in thousands of marks. Standard errors have been computed using
the White correction.

b-Also included are dummies for the type of contract, large firm size, public sector,
occupations, industries and years.

Sub-sample of 8511 observations.

31



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